Be it resolved that International Financial Institutions benefit the quality of life for people around the world
Pro: Lisa Park
THESIS: IFIs are helpful to the quality of life of people around the world
IFIs improve economies and economy is the basic and utmost necessary ingredient in improving the quality of life, for with better economy comes more money and with more money comes a better quality of life. Why? Because with money, we can have basic necessities, access to medical care which falls under healthy conditions, rights because with money comes power and thus rights, economy, environment because with money we can provide aid to natural habitats, education because with money we can provide higher education as the one we are receiving right now, family and other companion because with money we can bribe people to become our friends, or adopt kids and etc, and finally attitude because if money can improve all these things, why would we be pessimistic about our lives? I admit that along the way, IFIs might not help improve the quality of life of some classes, nevertheless, in the long run, after their projects and everything are finished, IFIs help improve the quality of life by improving the country's economy. So, how do IFIs improve a nation’s economic status?
1) Provides loans to countries with balance of payments difficulties, to provide temporary financing and to support policies aimed at correcting the underlying problems; loans to low-income countries are also aimed especially at poverty reduction..
Small domestic companies start out weak and without fund, thus they are more vulnerable to becoming overpowered by other multi-national corporations that reside in their respective countries. Therefore, World Bank, IMF and other IFIs provide loans to these corporations and governments to pay off any emergent debts they might have and have them pay back later when they're better off.
In recent years, the World Bank has worked closely with the IMF in designing the financial sector reform and economic bailouts for economic crises in Indonesia, Korea, Thailand, Russia, Argentina and Brazil. Structural and sector adjustment lending increased to approximately 60% of the Bank’s loan portfolio during 1999, according to the Bank’s annual report.
2) Tries to improve all aspects of quality of life along the way as well. Agribusiness Development Projectapproved a technical assistance (TA) grant for $150,000 in July 2001, to support the implementation of the National Policy and Action Plan to Combat Child Labor in Pakistan. Rural Finance Sector Development Program (RFSDP-$250 million) approved in December 2002 is providing easy access to loans by the rural population, provision of finance for the poor, expansion of rural finance, promotion of SMEs, and restructuring of the Agricultural Development Bank of Pakistan (ADBP)Labor Regulations and Implementation of Labor Policy: Agribusiness Development Business is currently assisting the Government in examining the existing labor regulations with a view to effecting possible improvements in the regulations and enhancing their effectiveness for the mutual benefit of both employers and workers.
3) Utilizes surveillance to keep in contact with the governments and monitor.
On a regular basis—usually once a year—IMF economists visit member countries to gather information and exchange views with government and central bank officials. During their mission, IMF staff also often meet with other stakeholders, such as parliamentarians and representatives of business, labor unions, and civil society to help evaluate the country's economic policies and direction. Upon its return to headquarters, the mission submits a report to the IMF's Executive Board for discussion. The Board's views are subsequently transmitted to the country's authorities.
In recent years, surveillance has become increasingly transparent. Almost all member countries now agree to publication of a Public Information Notice, which summarizes the views of IMF staff and the Executive Board. In nine out of ten cases, the staff report and other accompanying analysis is also published on the IMF's website.
4) Promotes democracy
Because of these fruit of free trade, many countries even reform their governments into democratic ones so that they too can partake in the free trade.
Accordingly, International Financial Institutions such as the IMF have devoted themselves - with varying success - to overcoming regional financial crises which often have destabilising effects on local economies and also the world economy (e.g. the crisis in Asia in 1997, Russia in 1998 and Latin America in 2002). Thus, because the IFIs aid economies in countries, they improve the quality of life.
Fruits of Free Trade: Free trade promotes competition among industries. facing competition, companies strive to become better and more efficient. Prices for many goods drop and quality goes up. NAFTA, in the long run, has made US into a better economy. American living standards have risen country enjoyed economic boom through most of 1990s
Because of these fruit of free trade, many countries even reform their governments into democratic ones so that they too can partake in the free trade. For example, European nations were cleaning up corruption, establishing fair laws, power to people, so that they can join EU and reap benefits of free trade
Ways to refute Asian market crisis: Politically there were some benefits. In several countries, particularly South Korea and Indonesia, there was renewed push for improved corporate governance. Rampaging inflation weakened the authority of the Suharto regime and led to its toppling in 1998, as well as accelerating East Timor's independence
In the long run, Korea improved and emerged as a successful nation
Refutation of opponent arguments
- IMF helps developing nations grow
- free trade encourage competition et
Free Trade is promoted after the
Questions:
1) Where are these statistics from? Are they from Wikipedia? Because officially, according to not only the IFIs themselves but also prestigious magazines such as the Economist, the IFIs keep careful watch of how things are run in the countries. Furthermore, your example of Argentina is approximately 30 years ago. Don't you have any more recent news? I'm pretty sure if they had such problems before, they would have improved their standards on how things are run.
2) Concerning the IMF of Korea, again, please give more recent examples because currently, Korea is well under its way of becoming one of the world's wealthiest countries, well actually we are one of the more wealthy nations on earth. As I've explained before, IFIs help and there need to be sacrifices made along the way to things better off in the long run. How do you suppose IFIs lowered the quality of life after their projects were all finished? Because Korea's quality of life seems pretty good right about now.
3) Concerning the FTAs, right now you are only talking about the small percent of laborers and various farmers that are concerned with losing their jobs. However, when inflation rate is high and the stock markets are in trouble, don't you understand that we should be worried about the quality of life of the consumers as well? Also, lower tariff rate on your goods, or on products made with your goods, makes your product available at a lower price than your competitors’ without sacrificing your profit margin. So this is good for developing companies as well. How do you explain this?
4) FTAs don't create health problems. That was one case with China, which has been accused of many other misdeeds in the past. Do you have any other legitimate examples?
THESIS: International Financial Institutions are detrimental to the quality of life of people around the world
Quality of life is determined by factors such as education, employment, healthcare and ofcourse basic necessities in life such as food. The IFIs promote policies that work to undermine these very factors that determine the quality of life for millions of people all over the world, especially in developing nations of Asia, Latin America, Africa and more.
General Info:
International Financial Institutions, specifically I will make reference to IMF, WTO and World bank, were created after WWII.
IMF and World bank was made to bolster economies of poorer countries
World Trade organization, to regulate and promote free trade and eliminate trade barriers so that free movement of goods is possible.
But these institutions actually acts to harm the quality of life of people all over the world
1.1 billion ppl living below poverty line according to 2003
Transition - IMF and world bank provide loans to developing nations in need of finance.
ARGUMENT 1: Developing nations are paying the price of foreign debts placed on to them by International financial institutions. Structural Adjustment Programs: Governments must reduce spending,they have to export more raw materials and cash crops, state industries are taken over by private companies
1) World Bank and IMF are lending money to fund projects that damage environment, abuse human rights and other bad ideas
- little is being done to check whether or not these projects are useful. More than 80 percent of 40 billion dollars loaned to Argentina from 1976 to 1983 is unaccounted for, receipts simply do not exist. Given to military dictators, money was lost, stolen or put into wasteful projects. The debt still exists and people are suffering
- Military rulers in Latin America spend borrowed money on weapons, corrupt politicians deposit money in their own bank accounts while there are millions starving.
- Because IFIs lend money to poor countries that waste the loans, the people have to suffer for it in the long term.
2) SAPs decrease the standard of living in developing nations all over the world
Latin America / Africa
- In 1985, indebted Bolivia began SAPs, it was forced to close down state factories and mines resulting more than 20000 miners to loose their jobs
- Poor people who rely on food subsidies have to starve
- 1993 Tanzania, people were no longer granted free education and financially challenged could not send children to school, schools were not provided with enough materials such as books and desks because of SAPs
- Government spending on healthcare decreases. In countries such as Zimbabwe, where millions of poor people suffer from diseases such as Malaria are not able to get free immunization because of SAPs
Asia
- Not so long ago Asian financial crisis of 1997. In favor of IMF's loans to Korea, the goverment had to increase interest rates in order to steady inflation and restore currency. The rise of interest rates choked off growth, thousands were fired and unable to support themselves and their families. Benefits to the poor and the unemployed also ended. 'I aM Fired'
3) Foreign debt promotes retail of drugs
- developing countries resort to drug trade in order to make profit and pay the loans. In Bolivia, Coca became an important source of income, made up 28 to 53 percent of Bolivia's total exports.
Between 1990 and 1996 HIPC debt increased by 30%. In 1996, the G7, the IMF and the World Bank announced a cancellation of up to 80% but in practice, far from diminishing, the debt continued its upward curve and climbed a further 4.7% in 5 year
*so how does this affect quality of life? it undermines education, healthcare, basic necessities, employment
ARGUMENT 2: Global Financial Institutions (WTO) encourages free trade, this has caused problems in around the world, not only in the economy.
1) Elimination of trade barriers are hurting the locals
- India is one of the biggest producers of milk and is a great exporter of milk powder. Before, poor farmers who owned cows were able to make a living by selling milk. After trade barriers were lifted, large quantities of highly subsidized foreign milk powder arrived and sold at much lower price, the farmers now could not make income because their milk was expensive compared to the foreign goods.
- South Korean farmers affected by the FTA because import taxes cut. Hence foreign agricultural products at low products sold out the crops made by local farmers in Korea.
2) Causes of Global Warming / environmental abuse -Rich nations affected too!!!-:
- 1990s, Environmental protection agency implemented rule that would make oil companies produce cleaner gasoline. However, this rule was repealed by WTO as countries such as major gasoline exporters Brazil and Venezuela protested. The US, didn’t want tariffs imposed on its goods in these countries, thus allowed dirtier gasoline to be sold.
- Gives power to multinational corporations, from abolition of trade barriers. Products of these big companies can be sold freely without taxes imposed. Hence these TNCs clear forests to build factories. Nike
3) Free trade causes health problems
- Chinese products containing Melamine by unrestricted trade, spread all over the world. Specifically in Korea, major food companies such as Haitai negatively affected.
4) Increases Gap between the Rich and the Poor
- Specialization of Power to monopolies
- Concentration of power
So how does this affect quality of life of people? It creates unemployment and poverty among the local producers and manufacturers, it destroys our environment and is detrimental to the health of the consumers
CROSS EXAMINATION QUESTIONS
You made a point that IFIs' loans help the developing nations, how do you explain the millions of dollars being wasted by bad projects, military dictators and other corrupt governments? does this work to improve quality of lives for millions of people who do not get the benefit because their leaders make wrong choices?
The economist added that the governments in the region - with which he claimed to be in daily contact - are taking adequate steps to keep the crisis under control and are all committed to fighting the current problems.
The common analogy of foreign is that IFIs are on the backs of these developing nations, they try to make it easier for the nation, but never gets off. People who once relied on government subsidies and services cannot enjoy their basic necessities and education even basic healthcare anymore because they are indebt. Arent these the very factors that determine the quality of life for the one point one billion people who live below the poverty line???
How does IFI introduce advanced technology to third world countries? Are you keeping in mind that these very technologies such as factories are working to destroy the environment in which people live in, isn't environment a key determinant of quality of life?
You made a point that these developing nations are being refined with new policies to join the IFIs. Why do you think developing nations desire to become a participant of institutions that are detrimental to the quality of life of their own people, I just want to know?!
If a developing nation were to join as you say IMF, what would they have to do with their debt? can insolvent governments also become a member of the very institution that has made them go into debt? what is your solution to this?
may I remind you that IMF is mainly controlled by the United States and their pressure to promote certain ideologies and reforms are many times FORCED on to these countries at the expense of their aid? Is this freedom? No and isnt freedom and rights of people the detereminants of quality of life???
In 1999, the developing countries repaid $1,680 million more than they received in the form of new loans. For every dollar in grant aid to developing countries, more than 13 comes back in debt repayments, do you see whats happening here, the interest rates are huge, doesnt this clearly show that IFIs are exploiting these developing nations , doesnt this show how greedy they are??
Pro: Lisa Park
THESIS: IFIs are helpful to the quality of life of people around the world
IFIs improve economies and economy is the basic and utmost necessary ingredient in improving the quality of life, for with better economy comes more money and with more money comes a better quality of life. Why? Because with money, we can have basic necessities, access to medical care which falls under healthy conditions, rights because with money comes power and thus rights, economy, environment because with money we can provide aid to natural habitats, education because with money we can provide higher education as the one we are receiving right now, family and other companion because with money we can bribe people to become our friends, or adopt kids and etc, and finally attitude because if money can improve all these things, why would we be pessimistic about our lives? I admit that along the way, IFIs might not help improve the quality of life of some classes, nevertheless, in the long run, after their projects and everything are finished, IFIs help improve the quality of life by improving the country's economy. So, how do IFIs improve a nation’s economic status?
1) Provides loans to countries with balance of payments difficulties, to provide temporary financing and to support policies aimed at correcting the underlying problems; loans to low-income countries are also aimed especially at poverty reduction..
Small domestic companies start out weak and without fund, thus they are more vulnerable to becoming overpowered by other multi-national corporations that reside in their respective countries. Therefore, World Bank, IMF and other IFIs provide loans to these corporations and governments to pay off any emergent debts they might have and have them pay back later when they're better off.
In recent years, the World Bank has worked closely with the IMF in designing the financial sector reform and economic bailouts for economic crises in Indonesia, Korea, Thailand, Russia, Argentina and Brazil. Structural and sector adjustment lending increased to approximately 60% of the Bank’s loan portfolio during 1999, according to the Bank’s annual report.
2) Tries to improve all aspects of quality of life along the way as well.
Agribusiness Development Project approved a technical assistance (TA) grant for $150,000 in July 2001, to support the implementation of the National Policy and Action Plan to Combat Child Labor in Pakistan. Rural Finance Sector Development Program (RFSDP-$250 million) approved in December 2002 is providing easy access to loans by the rural population, provision of finance for the poor, expansion of rural finance, promotion of SMEs, and restructuring of the Agricultural Development Bank of Pakistan (ADBP) Labor Regulations and Implementation of Labor Policy: Agribusiness Development Business is currently assisting the Government in examining the existing labor regulations with a view to effecting possible improvements in the regulations and enhancing their effectiveness for the mutual benefit of both employers and workers.
3) Utilizes surveillance to keep in contact with the governments and monitor.
On a regular basis—usually once a year—IMF economists visit member countries to gather information and exchange views with government and central bank officials. During their mission, IMF staff also often meet with other stakeholders, such as parliamentarians and representatives of business, labor unions, and civil society to help evaluate the country's economic policies and direction. Upon its return to headquarters, the mission submits a report to the IMF's Executive Board for discussion. The Board's views are subsequently transmitted to the country's authorities.
In recent years, surveillance has become increasingly transparent. Almost all member countries now agree to publication of a Public Information Notice, which summarizes the views of IMF staff and the Executive Board. In nine out of ten cases, the staff report and other accompanying analysis is also published on the IMF's website.
4) Promotes democracy
Because of these fruit of free trade, many countries even reform their governments into democratic ones so that they too can partake in the free trade.
Accordingly, International Financial Institutions such as the IMF have devoted themselves - with varying success - to overcoming regional financial crises which often have destabilising effects on local economies and also the world economy (e.g. the crisis in Asia in 1997, Russia in 1998 and Latin America in 2002). Thus, because the IFIs aid economies in countries, they improve the quality of life.
Sites useful:
http://www.wto.org/english/theWTO_e/minist_e/min99_e/english/misinf_e/01multi_e.htm
Fruits of Free Trade: Free trade promotes competition among industries. facing competition, companies strive to become better and more efficient. Prices for many goods drop and quality goes up. NAFTA, in the long run, has made US into a better economy. American living standards have risen country enjoyed economic boom through most of 1990s
Because of these fruit of free trade, many countries even reform their governments into democratic ones so that they too can partake in the free trade. For example, European nations were cleaning up corruption, establishing fair laws, power to people, so that they can join EU and reap benefits of free trade
Ways to refute Asian market crisis: Politically there were some benefits. In several countries, particularly South Korea and Indonesia, there was renewed push for improved corporate governance. Rampaging inflation weakened the authority of the Suharto regime and led to its toppling in 1998, as well as accelerating East Timor's independence
In the long run, Korea improved and emerged as a successful nation
Refutation of opponent arguments
- IMF helps developing nations grow
- free trade encourage competition et
Free Trade is promoted after the
Questions:
1) Where are these statistics from? Are they from Wikipedia? Because officially, according to not only the IFIs themselves but also prestigious magazines such as the Economist, the IFIs keep careful watch of how things are run in the countries. Furthermore, your example of Argentina is approximately 30 years ago. Don't you have any more recent news? I'm pretty sure if they had such problems before, they would have improved their standards on how things are run.
2) Concerning the IMF of Korea, again, please give more recent examples because currently, Korea is well under its way of becoming one of the world's wealthiest countries, well actually we are one of the more wealthy nations on earth. As I've explained before, IFIs help and there need to be sacrifices made along the way to things better off in the long run. How do you suppose IFIs lowered the quality of life after their projects were all finished? Because Korea's quality of life seems pretty good right about now.
3) Concerning the FTAs, right now you are only talking about the small percent of laborers and various farmers that are concerned with losing their jobs. However, when inflation rate is high and the stock markets are in trouble, don't you understand that we should be worried about the quality of life of the consumers as well? Also, lower tariff rate on your goods, or on products made with your goods, makes your product available at a lower price than your competitors’ without sacrificing your profit margin. So this is good for developing companies as well. How do you explain this?
4) FTAs don't create health problems. That was one case with China, which has been accused of many other misdeeds in the past. Do you have any other legitimate examples?
http://www.diplomatie.be/EN/policy/policynotedetail.asp?TEXTID=13669
http://www.monstersandcritics.com/news/business/news/article_1436264.php
http://www.imf.org/external/np/exr/facts/howlend.htm
http://www.adb.org/Documents/Speeches/2003/ms2003071.asp
http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp
http://www.buyusa.gov/globaldiversity/fta_benefits.html
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Con: Jennifer Ryu, Yongmin Cho
THESIS: International Financial Institutions are detrimental to the quality of life of people around the world
Quality of life is determined by factors such as education, employment, healthcare and ofcourse basic necessities in life such as food. The IFIs promote policies that work to undermine these very factors that determine the quality of life for millions of people all over the world, especially in developing nations of Asia, Latin America, Africa and more.
General Info:
International Financial Institutions, specifically I will make reference to IMF, WTO and World bank, were created after WWII.
IMF and World bank was made to bolster economies of poorer countries
World Trade organization, to regulate and promote free trade and eliminate trade barriers so that free movement of goods is possible.
But these institutions actually acts to harm the quality of life of people all over the world
1.1 billion ppl living below poverty line according to 2003
Transition - IMF and world bank provide loans to developing nations in need of finance.
ARGUMENT 1: Developing nations are paying the price of foreign debts placed on to them by International financial institutions. Structural Adjustment Programs: Governments must reduce spending,they have to export more raw materials and cash crops, state industries are taken over by private companies
1) World Bank and IMF are lending money to fund projects that damage environment, abuse human rights and other bad ideas
- little is being done to check whether or not these projects are useful. More than 80 percent of 40 billion dollars loaned to Argentina from 1976 to 1983 is unaccounted for, receipts simply do not exist. Given to military dictators, money was lost, stolen or put into wasteful projects. The debt still exists and people are suffering
- Military rulers in Latin America spend borrowed money on weapons, corrupt politicians deposit money in their own bank accounts while there are millions starving.
- Because IFIs lend money to poor countries that waste the loans, the people have to suffer for it in the long term.
2) SAPs decrease the standard of living in developing nations all over the world
Latin America / Africa
- In 1985, indebted Bolivia began SAPs, it was forced to close down state factories and mines resulting more than 20000 miners to loose their jobs
- Poor people who rely on food subsidies have to starve
- 1993 Tanzania, people were no longer granted free education and financially challenged could not send children to school, schools were not provided with enough materials such as books and desks because of SAPs
- Government spending on healthcare decreases. In countries such as Zimbabwe, where millions of poor people suffer from diseases such as Malaria are not able to get free immunization because of SAPs
Asia
- Not so long ago Asian financial crisis of 1997. In favor of IMF's loans to Korea, the goverment had to increase interest rates in order to steady inflation and restore currency. The rise of interest rates choked off growth, thousands were fired and unable to support themselves and their families. Benefits to the poor and the unemployed also ended. 'I aM Fired'
3) Foreign debt promotes retail of drugs
- developing countries resort to drug trade in order to make profit and pay the loans. In Bolivia, Coca became an important source of income, made up 28 to 53 percent of Bolivia's total exports.
Between 1990 and 1996 HIPC debt increased by 30%. In 1996, the G7, the IMF and the World Bank announced a cancellation of up to 80% but in practice, far from diminishing, the debt continued its upward curve and climbed a further 4.7% in 5 year
*so how does this affect quality of life? it undermines education, healthcare, basic necessities, employment
ARGUMENT 2: Global Financial Institutions (WTO) encourages free trade, this has caused problems in around the world, not only in the economy.
1) Elimination of trade barriers are hurting the locals
- India is one of the biggest producers of milk and is a great exporter of milk powder. Before, poor farmers who owned cows were able to make a living by selling milk. After trade barriers were lifted, large quantities of highly subsidized foreign milk powder arrived and sold at much lower price, the farmers now could not make income because their milk was expensive compared to the foreign goods.
- South Korean farmers affected by the FTA because import taxes cut. Hence foreign agricultural products at low products sold out the crops made by local farmers in Korea.
2) Causes of Global Warming / environmental abuse -Rich nations affected too!!!-:
- 1990s, Environmental protection agency implemented rule that would make oil companies produce cleaner gasoline. However, this rule was repealed by WTO as countries such as major gasoline exporters Brazil and Venezuela protested. The US, didn’t want tariffs imposed on its goods in these countries, thus allowed dirtier gasoline to be sold.
- Gives power to multinational corporations, from abolition of trade barriers. Products of these big companies can be sold freely without taxes imposed. Hence these TNCs clear forests to build factories. Nike
3) Free trade causes health problems
- Chinese products containing Melamine by unrestricted trade, spread all over the world. Specifically in Korea, major food companies such as Haitai negatively affected.
4) Increases Gap between the Rich and the Poor
- Specialization of Power to monopolies
- Concentration of power
CROSS EXAMINATION QUESTIONS
You made a point that IFIs' loans help the developing nations, how do you explain the millions of dollars being wasted by bad projects, military dictators and other corrupt governments? does this work to improve quality of lives for millions of people who do not get the benefit because their leaders make wrong choices?
The economist added that the governments in the region - with which he claimed to be in daily contact - are taking adequate steps to keep the crisis under control and are all committed to fighting the current problems.
The common analogy of foreign is that IFIs are on the backs of these developing nations, they try to make it easier for the nation, but never gets off. People who once relied on government subsidies and services cannot enjoy their basic necessities and education even basic healthcare anymore because they are indebt. Arent these the very factors that determine the quality of life for the one point one billion people who live below the poverty line???
How does IFI introduce advanced technology to third world countries? Are you keeping in mind that these very technologies such as factories are working to destroy the environment in which people live in, isn't environment a key determinant of quality of life?
You made a point that these developing nations are being refined with new policies to join the IFIs. Why do you think developing nations desire to become a participant of institutions that are detrimental to the quality of life of their own people, I just want to know?!
If a developing nation were to join as you say IMF, what would they have to do with their debt? can insolvent governments also become a member of the very institution that has made them go into debt? what is your solution to this?
may I remind you that IMF is mainly controlled by the United States and their pressure to promote certain ideologies and reforms are many times FORCED on to these countries at the expense of their aid? Is this freedom? No and isnt freedom and rights of people the detereminants of quality of life???
In 1999, the developing countries repaid $1,680 million more than they received in the form of new loans. For every dollar in grant aid to developing countries, more than 13 comes back in debt repayments, do you see whats happening here, the interest rates are huge, doesnt this clearly show that IFIs are exploiting these developing nations , doesnt this show how greedy they are??